How to Manage Too Much Student Loan Debt

Dealing with a student debt loan can be a very difficult process at times. Many individuals have accumulated way too much student loan debt, and they are now in over their heads. If this sounds like your current situation, here are some things for you to consider about managing this problem.


Before you can tackle the problem of having too much student loan debt, you need to evaluate where you are. You need to first pull out your financial statements that include information about your monthly expenses. Determine how much money you are bringing in each month and how much is going out. If you have a surplus or a deficit, write it down so that you will be able to refer to it later. 

After you have determined how much money you have each month, you will also need to get a copy of your credit report. Look at your credit report so that you can determine what your FICO score is. You will need to know this information so that you can properly assess your lending options in the future.

You also need to take a detailed look at your debt situation and determine which debts you would like to pay off first. Determine which student loan debts are the most important and which ones would be the most beneficial to you if you paid them off. 


After you have evaluated your current situation, you need to come up with a potential budget to work with. Start by allocating a certain amount of money to the debts that you decided were the most important to pay off first. You should also try to make a change to your spending habits as much as you can. Try to cut out any unnecessary expenses that you have on an ongoing basis. The more money that you can cut out of other parts of your budget, the more money you will be able to apply to paying off student loan debt.

Make Deals

In addition to coming up with a personal budget, you also need to see if you can make some deals with your creditors. Talk to them about your situation and see what they would be willing to do for you. In many cases, they will be able to offer you a payment plan that fits your budget. For example, you may be able to get started with a graduated repayment program. This would allow you to make small monthly payments at the beginning of the program and eventually work your way up to larger payments.

Some creditors may be willing to take a lump sum payment in return for closing out your account. Sometimes, this is a good way to cut down quickly on the total amount that you owe.

Debt Collectors

If you are in over your head, you may find yourself dealing with debt collectors. If debt collectors continually call you about your student loan debt, try to talk with them about the problem. Let them know that you are setting up a payment plan to take care of the issue.